Access to Finance: Funding Is Not Readily Available for Growing Firms.
Access to finance is one of the most important resources for growing companies at the second stage of the ecosystem
growth cycle. Unfortunately, the majority of local entrepreneurs leading companies in the scaleup phase reported that
access to capital was not readily available.
There are only a handful of local investment firms currently making early-stage, series-A-level investments in Miami.
The most recent state-level data shows that venture capital investment in Florida is only $10 per resident, which is well
below the US average of $71 per resident and significantly below states like Massachusetts, where the average is $330 per
resident.18 Local investors also reported that many Miami-based entrepreneurs are poorly educated on the investment
process. A prominent angel investor stated that he spends 70% of his time with potential investees explaining the meaning
of specific deal terms.

$

10

Venture capital
investment for the
state of Florida is only
$10 per resident vs.
$71 for the U.S.

“Access to finance is the biggest
challenge in Miami.”
–Investor

“I was on the Inc. 5000 for four
years in a row and no one would
fund me.”
–Entrepreneur

Mentorship: Growth-Oriented Entrepreneurs Lack Local Mentors and
Are Not Mentoring Others.
Mentorship is one of the most important ways that successful entrepreneurs reinvest their knowledge and social capital
into the next generation of entrepreneurs. Unfortunately, local entrepreneurs at scaleup companies are more likely to
have mentors from outside of Miami than inside it, and most of these entrepreneurs do not mentor others themselves.
Miami also has a wealth of retired entrepreneurs and executives who could play valuable roles as mentors for local
companies in the scaleup phase, and it has a number of entrepreneurs at young, growing companies who could be
valuable mentors to local startups. Participants in our focus groups highlighted the lack of a “central clearinghouse” to
connect potential mentors with high-potential entrepreneurs who could benefit from their advice.

59

%

Fifty-nine percent
of the mentors
of scaleup
entrepreneurs in the
study do not live in
Miami.

“Not enough successful retirees are
being tapped for advice and board
roles.”

“I know I should be mentoring
others, but I don’t do it.”
–Entrepreneur

–Entrepreneur

Role Model Promotion: Successful Entrepreneurs Are Not
Promoted as Inspirational Examples within Miami.
Entrepreneurs in healthy ecosystems often report that they have been inspired by the success of other local
entrepreneurs and companies. This is not the case in Miami. Most of the entrepreneurs leading companies in the scaleup
phase did not report being inspired by local founders who had achieved success.
The participants in our focus groups noted that Miami is made up of many different communities, which are often
geographically and socially isolated from one another. Because of this, the success stories of each community often do
not spread to other groups.

63

%

Sixty-three percent
of entrepreneurs at
scaleup companies
were not inspired by
another entrepreneur
in Miami.

“Many parents in Miami, even if they
are self-employed, don’t want their
kids to become entrepreneurs.”
–Educator

“Inspiration is probably the thing
we need the most.”
–Support Organization